“Do not save what is left after spending, spend what is left after saving.” – W. Buffet

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Money Mustache

As 2013 comes to a close, I wanted to start a blog so I could keep tabs on my progress towards Financial Independence and Early Retirement. In September 2013 I stumbled upon a blog called Mr. Money Mustache and it changed my views on money. I have been saving money since March 2012, I set up my checking account to transfer $50 each pay period to my savings account. I felt really proud of myself because I’ve never really had a savings account before.

But I still kept my anti-mustachian ways. I used to spend $25 every other week (when the paycheck hits my checking account) buying makeup from Sephora rationalizing that I get free shipping and samples! My savings slowly built up and I felt accomplished. I felt like I was ready for whatever. But then I quit my job August 2012 and my savings was only good to cover a month’s worth of expenses. It took me four months to get a new job.

This job paid a bit more and it also offered commission. I signed up for a 401k for 3% which the company matched. My commission was good enough to make it seem like I was getting 3 paychecks a month, life was good. I learned my lesson and have stopped ordering non essentials online. I stopped my monthly box subscriptions for makeup and perfume samples. I stopped clipping coupons so I could buy things for cheap that I would never use. I increased my transfers to my savings account to $100/check. After a couple of months, I doubled that. I kept increasing until I was putting away 50%-60% of my paycheck.

Then in November 2013 I increased my 401k to 4.5%, the full company match. I enrolled in ESPP 5%. I started a Vanguard account and bought VTSMX funds.

I believe I ended 2013 in mustachian style but there’s still a lot of fat to cut. This is why I started this blog so I can keep up and be accountable come 2014.

My 2014 Financial Goals so far are:

Double my networth by starting a Traditional IRA account (my Christmas present to myself is the $1000 start up for this), buy stocks often, and keep contributing to my 401k.

Create a food budget. Our monthly food expense is probably ginormous. I say probably because we have never tracked it. I plan to create a spreadsheet where we track our food purchases and when we purchased it. This way I can gauge how long a gallon of milk or a bag of coffee lasts.

Decrease food waste. Cook enough food so we don’t have a lot of leftovers that take up space in the fridge, are eventually forgotten and have things growing on them only to be thrown away.

Have an income generating hobby like jewelry-making. But I have to stop buying beads. Ugh. I have suddenly gotten into jewelry making. So far I’ve sold a set for $20 but I can’t keep buying beads. I have to use what I have bought.

This is an ever growing list which I will continue to modify. Here’s to a more Mustachian 2014.